Are you searching for a safe, government-backed investment that provides a fixed monthly income? The Post Office Monthly Income Scheme (POMIS) 2025 could be the perfect solution! With an attractive 7.4% annual interest rate, this scheme allows you to earn up to ₹9,250 per month with a ₹15 lakh investment—making it ideal for retirees, risk-averse investors, and anyone seeking stable passive income.
In this detailed guide, we’ll cover:
✅ What is POMIS & How Does It Work?
✅ Interest Rates & Monthly Payouts (2025 Update)
✅ Eligibility & Account Opening Process
✅ How Much You Can Earn (Single vs. Joint Account)
✅ Premature Withdrawal Rules & Penalties
✅ POMIS vs. Bank FD – Which is Better?
✅ Step-by-Step Guide to Investing
What is the Post Office Monthly Income Scheme (POMIS)?
POMIS is a low-risk, fixed-income investment scheme offered by India Post, backed by the Government of India. It provides:
✔ Guaranteed monthly payouts (no market risks)
✔ Higher interest rates than most bank FDs
✔ Flexible investment limits (₹1,000 to ₹15 lakh)
✔ Tax benefits (subject to applicable laws)
Who Should Invest in POMIS?
- Retirees looking for pension-like income
- Conservative investors who prefer zero-risk returns
- Parents/Minors saving for future expenses
- Salaried professionals seeking additional monthly income
POMIS 2025 Interest Rates & Monthly Earnings
| Investment Type | Maximum Investment | Interest Rate (2025) | Annual Interest | Monthly Income |
|---|---|---|---|---|
| Single Account | ₹9 lakh | 7.4% | ₹66,600 | ₹5,550 |
| Joint Account (2-3 people) | ₹15 lakh | 7.4% | ₹1,11,000 | ₹9,250 |
Example Calculation:
- If you invest ₹15 lakh in a joint account, you get:
- ₹9,250 per month (₹1,11,000 per year)
- If you invest ₹9 lakh in a single account, you get:
- ₹5,550 per month (₹66,600 per year)
Note: Interest is paid monthly, but calculated annually. Unwithdrawn interest earns additional savings account interest.
Who Can Open a POMIS Account?
✅ Indian Residents (individuals & joint holders)
✅ Minors (10+ years) can open an account in their name
✅ Guardians can open accounts for minors
✅ Trusts & HUFs are not eligible
Investment Limits:
- Minimum Deposit: ₹1,000 (in multiples of ₹1,000)
- Maximum Deposit:
- Single Account: ₹9 lakh
- Joint Account: ₹15 lakh (shared equally among holders)
How to Open a POMIS Account? (Step-by-Step Guide)
1. Visit Your Nearest Post Office
- Carry ID proof (Aadhaar, PAN, Voter ID)
- Submit passport-size photos
- Fill out the POMIS application form
2. Deposit Money
- Pay via cash, cheque, or demand draft
- You can also transfer funds from a Post Office Savings Account
3. Receive Your Passbook
- The passbook records all transactions & monthly credits
- Keep it safe for future withdrawals & maturity claims
Premature Withdrawal Rules & Penalties
| Withdrawal Time | Penalty |
|---|---|
| Before 1 year | Not allowed |
| After 1-3 years | 2% deduction on principal |
| After 3-5 years | 1% deduction on principal |
Maturity & Renewal
- Maturity Period: 5 years
- On maturity, you can:
- Withdraw the full amount
- Extend for another 5 years (new interest rates apply)
POMIS vs. Bank Fixed Deposit (FD): Which is Better?
| Feature | POMIS | Bank FD |
|---|---|---|
| Interest Rate (2025) | 7.4% | 5.5% – 7% |
| Monthly Payout | Yes | Only in select FDs |
| Safety | Govt. Backed (100% Secure) | DICIC insured (up to ₹5 lakh) |
| Max Investment | ₹15 lakh (Joint) | No fixed limit |
| Tax Benefits | No TDS if Form 15G/H submitted | TDS if interest > ₹40,000/year |
Verdict: POMIS is better for risk-free monthly income, while Bank FDs offer higher liquidity.
Frequently Asked Questions (FAQs)
1. Can I open multiple POMIS accounts?
- No, only one single + one joint account allowed per person.
2. Is POMIS interest taxable?
- Yes, but no TDS if Form 15G/H is submitted.
3. Can NRIs invest in POMIS?
- No, only Indian residents are eligible.
4. What if I need money before 5 years?
- You can withdraw after 1 year with a penalty (1-2% deduction).
Final Verdict: Should You Invest in POMIS 2025?
✅ Best For: Retirees, risk-averse investors, and those needing fixed monthly income.
❌ Not Ideal For: Those needing high liquidity or higher returns (consider mutual funds or stocks).
Final Recommendation:
If you want a safe, steady income without market risks, POMIS is a top choice in 2025. With ₹15 lakh, you can earn ₹9,250/month—making it a smart alternative to bank FDs.